The Great Depression Chapter 22

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The Great DepressionChapter 22
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Coolidge Administration

• Dawes Plan of 1924
• Arranged to send low-interest loans to Germany to
  help pay back reparations.
• The loans would then be used to pay back German
  debt to Britain and France.
• Kellogg-Briand Pact of 1928
• An agreement between the United States and France
  (and 60 other nations) to outlaw war as an
  instrument of national foreign policy.

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1920s Consumerism

• Buying Goods on Credit
• In addition to advertising the idea of buying
  goods on credit lured Americans into buying more
  than they made.
• Installment Plan
• A credit plan which allowed people to buy goods
  on credit with little down.
• Decade of Spending
• Credit and installment plans encouraged people to
  spend money they didnt have, but fueled growth
  of the consumer economy. Most Americans began to
  only worry about the present without any concern
  for the future The decade of an easy life and
  enjoyment was heading for a paradox.

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1920s Consumerism

• 1920s was known as a decade of economic
  prosperity and, a growing popular culture, and
  widespread consumerism. The booming economy of
  the 1920s changed life in the following ways. . .
• The workweek shortened to forty hours allowing
  for more leisure time.
• Consumers used new credit instruments to buy new
  machines and stocks.
• Many prosperous Americans relied on cars for
  transportation and moved to the suburbs where
  they could enjoy more space.

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The Market Crashes
Chapter 22, Section 1

• The market crash in October of 1929 happened very
  quickly.
• In September, the Dow Jones Industrial Average,
  an average of stock prices of major industries,
  had reached an all time high of 381.
• On October 23 and 24, the Dow Jones Average
  quickly plummeted, which caused a panic.
• On Black Tuesday, October 29, 1929, most people
  sold their stocks at a tremendous loss.
• This collapse of the stock market is called the
  Great Crash. Overall losses totaled 30 billion.

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The New York Stock Exchange
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Effects of the Great Crash, 1929
Chapter 22, Section 1
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The economic contraction that began with the
Great Crash triggered the most severe economic
downturn in the nations historythe Great
Depression. The Great Depression lasted from
1929 until the United States entered World War II
in 1941.The stock market crash of 1929 alone
did not cause the Great Depression. Rather, both
the Great Crash and the Depression were the
result of deep underlying problems with the
countrys economy.
The Great Depression
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Underlying Causes of the Depression
Chapter 22, Section 1
Other Not enough money in circulation to bail
banks out because No FDIC to insure peoples
money.
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As banks closed their doors and more people lost
their savings, fear gripped depositors across the
nation.
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Poverty Spreads
Chapter 22, Section 2

• People of all levels of society faced hardships
  during the Great Depression.
• Unemployed laborers, unable to pay their rent,
  became homeless.
• Sometimes the homeless built shacks of tar paper
  or scrap material. These shanty town settlements
  came to be called Hoovervilles.
• As a result of a severe drought and farming
  practices that removed protective prairie
  grasses, dust storms ravaged the central and
  southern Great Plains region. This area,
  stripped of its natural soil, was reduced to dust
  and became known as the Dust Bowl.
• The combination of the terrible weather and low
  agricultural prices caused about 60 percent of
  Dust Bowl families to lose their farms.

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Bank riots Unemployment
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Unemployment Line
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• Hangin at the Hooverville with the Homies

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Homelessness
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... a Dust Bowl of unproductive, eroded
farmland.
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Poverty Strains Society
Chapter 22, Section 2
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Soup Kitchen
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Food Bank
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2. Banking Money Policies
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Social Effects of the DepressionAssessment
Chapter 22, Section 2

• What factors contributed to disaster for farming
  families living in the Dust Bowl?
• (A) Drought
• (B) Farmers plowing under prairie grasses
• (C) Decreased prices for agricultural goods
• (D) All of the above
• The shanty towns made up of temporary shacks were
  called
• (A) Roosevilles
• (B) Hoovervilles
• (C) Greenspans
• (D) Simpson towns

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Social Effects of the DepressionAssessment
Chapter 22, Section 2

• What factors contributed to disaster for farming
  families living in the Dust Bowl?
• (A) Drought
• (B) Farmers plowing under prairie grasses
• (C) Decreased prices for agricultural goods
• (D) All of the above
• The shanty towns made up of temporary shacks were
  called
• (A) Roosevilles
• (B) Hoovervilles
• (C) Greenspans
• (D) Simpson towns

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Americans Pull Together
Chapter 22, Section 3

• Throughout the country, people pulled together to
  help one another.
• Neighbors in difficult circumstances helped those
  they saw as worse off than themselves.
• When banks foreclosed on a farm, neighboring
  farmers would bid pennies on land and machines,
  which they would then return to the original
  owners. These sales became known as penny
  auctions.

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Signs of Change
Chapter 22, Section 3
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Surviving the Great DepressionAssessment
Chapter 22, Section 3

• What was a penny auction?
• (A) An event at which stocks once highly valued
  were auctioned off for a penny.
• (B) An event at which laborers eager for work
  auctioned off their labor for pennies.
• (C) An event at which neighbors, in an effort to
  help each other, auctioned their spare rooms for
  a penny.
• (D) An event at which neighboring farmers bid
  pennies on land and machines, which the buyers
  then returned to the original owners.

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Surviving the Great DepressionAssessment
Chapter 22, Section 3

• What was a penny auction?
• (A) An event at which stocks once highly valued
  were auctioned off for a penny.
• (B) An event at which laborers eager for work
  auctioned off their labor for pennies.
• (C) An event at which neighbors, in an effort to
  help each other, auctioned their spare rooms for
  a penny.
• (D) An event at which neighboring farmers bid
  pennies on land and machines, which the buyers
  then returned to the original owners.

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Hoovers Limited Strategy
Chapter 22, Section 4

• To protect domestic industries, Congress passed
  the Hawley-Smoot tariff, the highest import tax
  in history. European countries also raised their
  tariffs, and international trade suffered a
  slowdown.
• Hoover set up the Reconstruction Finance
  Corporation (RFC), which gave government credit
  to banks, industries, railroads, and insurance
  companies. The theory was that prosperity at the
  top would help the economy as a whole. Many
  Americans saw it as helping bankers and big
  businessmen, while ordinary people went hungry.
• Hoover did not support federal public assistance
  because he believed it would destroy peoples
  self-respect and create a large bureaucracy.

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A New Deal for America
Chapter 22, Section 4

• FDR promised a New Deal for the American people.
• He was ready to experiment with government roles
  in an effort to end the Depression.
• As governor of New York, Roosevelt had set up an
  unemployment commission and a relief agency.
• FDRs wife, Eleanor, was an experienced social
  reformer. She worked for public housing
  legislation, state government reform, birth
  control, and better conditions for working women.

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The Election of 1932
Chapter 22, Section 4

• Franklin Roosevelt
• Believed that government had a responsibility to
  help people in need.
• Called for a reappraisal of values and more
  controls on big business.
• Helped many Americans reassess the importance of
  making it on their own without any help.
• Much of his support came from urban workers, coal
  miners, and immigrants in need of federal relief.
• Roosevelt won 57 percent of the popular vote and
  almost 89 percent of the electoral vote.

• Herbert Hoover
• Believed that federal government should not try
  to fix peoples problems.
• Argued that federal aid and government policies
  to help the poor would alter the foundation of
  our national life.
• He argued for voluntary aid to help the poor and
  argued against giving the national government
  more power.
• Hoover gave very few campaign speeches and was
  jeered by crowds.

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4. Political Decisions
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The Election of 1932Assessment
Chapter 22, Section 4

• What was one way President Hoover wanted to
  battle the Depression?
• (A) Federal relief programs
• (B) U.S. expansion into foreign markets
• (C) Stock market investment
• (D) Voluntary aid
• Roosevelt won public support from which groups?
• (A) Urban workers and coal miners
• (B) Big business executives
• (C) Supporters of international trade
• (D) Journalists and newspaper publishers

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The Election of 1932Assessment
Chapter 22, Section 4

• What was one way President Hoover wanted to
  battle the Depression?
• (A) Federal relief programs
• (B) U.S. expansion into foreign markets
• (C) Stock market investment
• (D) Voluntary aid
• Roosevelt won public support from which groups?
• (A) Urban workers and coal miners
• (B) Big business executives
• (C) Supporters of international trade
• (D) Journalists and newspaper publishers

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Depression Era Photography
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Dorothea Lange producedone of the most enduring
images of the Great Depression. A mother left
homeless by the Dust Bowl.
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Dustbowl Farm
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